This morning I posted the concerns out of Credit Suisse and Axiom Capital that solar companies are adding too much capacity when demand is expected to soften. I think part of the reason Suntech Power (STP) is under pressure this morning is the announcement they are adding 375MW in capacity with the full acquisition of Glory Silicon Technology, of which it current has an investment in.
==> Click Here For Your FREE Daily Suntech Technical … Read the rest
I just posted about the Credit Suisse caution about increasing solar supply and softening demand for next year. They aren’t the only ones sounding the caution alarm. A couple days ago, Axiom Capital was quoted in Bloomberg as saying it could be an Armageddon situation in the solar space next year as capacity ramps up and demand softens. Analyst Gordon Johnson potentially sees supply outstripping demand 3:1 which would send prices crashing (he predicts to … Read the rest
Suntech Power (STP) continues to get punished and is testing the yearly lows today after reporting earnings that were shy of analyst estimates on the EPS side. The company reported an EPS of .18/share vs the analyst estimate for .23 on revenues of $744 million vs the analyst estimate of $713 million. Gross margin slipped sequentially from 18.2% to 16.4% due to a decrease in ASP.
===> Click Here For Your FREE Suntech Power Technical … Read the rest
According to Barron’s, Credit Suisse is out this morning downgrading several solar stocks due to concerns about oversupply and softening demand next year. Analyst Satya Kumar sees new capacity of 2GW/month this quarter with an overall increase of 50% next year while demand remains flat. As a result, pricing could decline quicker than expected.
He’s downgrading six solar stocks, all of which are under pressure today.
Outperform ==> Neutral: First Solar (FSLR), Trina Solar … Read the rest
After trading stocks for nearly 15 years and covering the markets religiously for nearly 10, there are certain nuances you pick up on. One is the fact that the blogosphere is riddled with misleading headlines and outright errors. Hey, I’m guilty too at times. It always pays to double check and also keep in mind that most sites don’t report the non GAAP number which is the number that analysts use. That’s why you’ll often … Read the rest
China Sunergy (CSUN) reported Q3 earnings results this morning that smashed analyst estimates on the EPS side, but inline on the revenue side. The company reported an EPS of .37 (well ahead of the .20/share estimate) on revenues of $126 million which matched the analyst estimate. That’s good for quarter over quarter growth of 95% and 57% respectively.
===> Click Here For Your FREE Daily China Sunergy Technical Analysis
“Supported by continued strong solar market … Read the rest
Hapoalim Securities is raising its 2010 and 2011 estimates on Trina Solar (TSL) and is raising the price target from $21 – $27 driven by firm pricing, a rebounding Euro and lower input costs. Shares of TSL were hit hard on Friday with heavy volume, but held support at the 200 day moving average and our recovering a bit today.
===> Click Here For Your FREE Daily Trina Solar Technical Analysis
Hapoalim is also raising … Read the rest
STR Holdings (STRI) reported strong results this morning, but apparently it wasn’t enough to match lofty expectations after the stock has more than doubled in the past year. The company reported an EPS of .39 which was well above the analyst consensus estimate of .33 and 39% higher than a year ago, but the first sequential decline in three quarters. Revenues beat the analyst estimate of $92 million, coming in at $97.8 million which represents … Read the rest
Auriga is out initiating coverage on Daqo New Energy (DQ) and is considerably bullish, calling the company highly profitable and undervalued. The firm initiates Daqo with a Buy rating and $20 price target (about 40% higher than current levels).
====> Click Here For Your FREE Daqo Technical Analysis
Daqo produces high quality, low cost polysilicon for use in solar products but as Auriga notes the company is trying to establish its wafer and module manufacturing … Read the rest
Sunpower (SPWRA) has announced earnings results after the bell today that doubled the analyst estimates on the EPS side at .26/share on revenues of $550 million vs the analyst estimate for $471 million. While that’s a big bump over the average estimate it’s not impressive when compared to the year ago quarter when the company reported .46 EPS. I just don’t think the quarter is going to be enough for another big leg up in … Read the rest